Shanda issues convertible to finance share buyback

Investors embrace the earnings-accretive deal, allowing the CB to be upsized by 19% to $155 million.

Chinese online gaming and entertainment media company Shanda Interactive Entertainment has raised $155 million from the sale of three-year non-callable convertible bonds, which it will use for a share buyback of up to $200 million.

The CB, which was arranged by Goldman Sachs, was welcomed by investors as the combination with the buyback means the deal will be earnings accretive. This allowed it to be upsized from an initial $130 million and set it thoroughly apart from two other...